Have been doing some thinking about the various Brokers/Analysts puting out price targets, especially small/microaps like CTQ
I attended their AGM and am also most heartened by Mark Simari's continual buying...indication of confidence.
At the AGM the board treated me very well and explained answers to all questions I had.
I believe these guys are okay. They have uncovered a market and have the experience and knowledge to succeed.
I will be here as long as it takes if they continue to execute as they have.
BUT...$0.22c price target??? I/we wish.
The current short term Bond rate is about 5% the 10 year bond rate is about 3.45% These reflect the cost of capital.
Factors determining the share price include liquidity, the cost of $$ (both for the company and anyone wishing to invest) and then a risk premium based around an investors view of the longer term profitability and therefore value.
CGS is probably their nearest comparator (not competitor) CGS is currently trading at 53.15 X P/E
(note ASX bundles CTQ against Sigma Healthcare...dunno how they figured that SIG is a very different business indeed)
Anyway, back to my point. What earnings multiples would justify a $0.22 price target? At what multiple?
PGC current market cap $6.79 M (153,600,000 shares)
153,600,000 X $0.22 = $33.792 Million
CTQ valuation will need to rise 4.796 Times ( 497.65%)
Sensible question then becomes , what level of earnings justify that?
Until any company reaches FCF + then Profitability they must be regarded with some degree of risk. That risk is a large part of the valuation..
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Have been doing some thinking about the various Brokers/Analysts...
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Mkt cap ! $2.845M |
Open | High | Low | Value | Volume |
1.2¢ | 1.2¢ | 1.2¢ | $323 | 26.89K |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 862816 | 1.2¢ |
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Price($) | Vol. | No. |
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1.5¢ | 540004 | 1 |
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No. | Vol. | Price($) |
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1 | 862816 | 0.012 |
4 | 760398 | 0.010 |
4 | 603256 | 0.009 |
3 | 757500 | 0.008 |
2 | 500000 | 0.007 |
Price($) | Vol. | No. |
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0.015 | 540004 | 1 |
0.016 | 1162500 | 3 |
0.018 | 467503 | 1 |
0.023 | 1675003 | 2 |
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